Cycle Trading

Stocks are getting bit stretched above the 10 day MA.

Stocks will likely need to consolidate to allow the 10 day MA to catch up to price. However stocks did form a daily swing high. Tuesday was day 22 for the daily equity cycle, which indicates that stocks are approaching their timing band for a daily cycle decline.

If stocks deliver bearish follow through and closes back in the (pink) consolidation zone that would signal the daily cycle decline. Stocks are currently in a daily uptrend. Stocks will remain in their daily uptrend unless they close back below the lower daily cycle band.